DETROIT — Ford Motor will reinstate its common dividend beginning in the fourth quarter, greater than a yr and a half after suspending the payments throughout the early days of the coronavirus pandemic.
Ford stated the fourth-quarter dividend of 10 cents per share on excellent widespread and Class B inventory might be paid on Dec. 1 to shareholders at the shut of enterprise Nov. 19. The corporate introduced the dividend Wednesday when it released its third-quarter earnings, which beat Wall Street’s expectations.
Ford shares jumped by greater than 9% throughout after-hours buying and selling. The inventory closed Wednesday down by 2.7% to $15.51 a share.
“The energy of the enterprise provides us the confidence to reinstate the dividend at this level,” CFO John Lawler advised reporters Wednesday throughout a name.
Lawler stated the firm will not be capital-constrained and is assured it will possibly finance an aggressive turnaround plan, which it calls Ford+. The plan consists of investing billions in electrical and autonomous automobiles in addition to paying the dividend.
The quarterly value of the dividend might be about $400 million, in accordance to Lawler.
Ford was fast to reduce the dividend to shore up money as the coronavirus pandemic brought on the automaker to shutter crops and dealerships final yr to cease the unfold of Covid.
General Motors, which reduce its dividend a month after Ford, has not reinstated its dividend.
Ford to reinstate dividend in the fourth quarter Source link Ford to reinstate dividend in the fourth quarter